The sustained stability in the foreign exchange (FX) market is beginning to reflect on the financial health of companies in the fast-moving consumer goods (FMCG) sector, with many operators achieving a significant turnaround in the first half of the year.
After years of battling steep losses or weakened profit margins due to an extreme FX market, the companies have returned to profitability, posting robust earnings in the unaudited first half (H1) financial statement.
Many of the firms in the sector suffered heavily from the depreciation of the naira in 2023 and 2024.
The crisis led to high production costs, largely due to a sharp rise in raw material importation as well as FX revaluation losses. The impact was particularly severe on the balance sheets of the firms, compromising long-term financial planning.
However, with the naira now enjoying relative stability, the challenges have eased considerably.
The impacts have been visible in the FMCG firms’ H1 2025 unaudited financial statements, as some of the players recorded profit growth of over 200 per cent year-on-year.
For instance, Nestlé Nigeria Plc reported a pre-tax profit of N88.4 billion in the period, a significant recovery from the N252.5 billion pre-tax loss posted during the same period in 2024.
This turnaround was supported by a 43 per cent rise in revenue, which climbed to N581.1 billion from N406 billion in H1 2024.
In the second quarter of 2024, the company had posted a pre-tax loss of N56.4 billion, though that was an improvement on N94 billion recorded in Q2 2023.
Cadbury Nigeria Plc also recorded a strong turnaround. The company rose from a pre-tax loss of N13.9 billion in H1 2024 to a pre-tax profit of N14.5 billion in the first half of 2025, representing a sharp recovery.
Its revenue rose from N51 billion to N77 billion over the same period. Notably, in Q2, 2024, Cadbury posted a N3.43 billion pre-tax loss, a substantial improvement from the N19.47 billion loss recorded in the same quarter of 2023.
Nigerian Breweries Plc also returned to profitability with a pre-tax profit of N88.42 billion in H1 2025, reversing the N85.2 billion loss recorded during the first half of 2024.
The turnaround was aided by a robust second-quarter performance, where it recorded a pre-tax profit of N43.87 billion compared to a loss of N33 billion in Q2 2024.
Its Q2 revenue climbed by 40.8 per cent year-on-year to N354.51 billion, from N251.76 billion in Q2 2024, lifting total H1 revenue to N738.14 billion, a 54 per cent increase over the previous year.
Unilever Nigeria Plc grew its pre-tax profit fourfold, from N6 billion in the first half of 2024 to N24.1 billion in 2025.
The company’s revenue also increased from N63 billion to N98 billion during the same period, reflecting both improved operational efficiency and pricing strategies.
For Champion Breweries Plc, it recorded a pre-tax profit of N3.4 billion in H1 2025, marking a strong recovery from a loss of N333 million in the first half of 2024. The company also posted a Q2 2025 pre-tax profit of N1.7 billion, 262 per cent up from N465.4 million in the corresponding quarter of 2024.
Its total revenue for the first half of 2025 stood at N15.9 billion, representing a 66.9 per cent year-on-year increase.
NASCON Allied Industries Plc also saw a significant improvement in its performance, recording a pre-tax profit of N23 billion in H1 compared to. The amount is close to 230 per cent higher than N7 billion posted in the same period in 2024.
Its revenue surged to N78 billion, up from N50 billion recorded in the first half of the previous year.
Analysts said the latest half-year earnings from FMCG companies are clear indicators that macroeconomic reforms are beginning to yield positive results for the Nigerian economy.
With reduced FX pressures and stronger consumer spending, the outlook for the sector appears increasingly optimistic heading into the second half of 2025, they said.
